1998 (10) TMI 227

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..... Briquettes covered under Chapter 25. Earlier, these products were covered under Item 68 of the erstwhile first schedule. 3. He further submitted that for mining operations, the appellants procure Ammonium Nitrate and Fuel Oil and mix them in predetermined proportion to obtain a mixture, commonly known as ANFO , which is used for blasting operations. This activity is carried on by them from the very beginning. Neither the Department nor the appellants ever considered that simple physical mixing of above two ingredients amounted to manufacture within the meaning of Section 2(f) to attract levy of duty on ANFO . 4. He also submitted that such a mixture does not have any shelf-life and is prepared as per Corporation s immediate requir .....

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..... ame eligible for full exemption under Notification No. 182/87-C.E., dated 27-7-1988 and the classification list permitting the availment of the said exemption has been duly approved subsequently. 7. Learned Counsel also submitted that the appellants believed that simple physical mixing of two ingredients viz. Ammonium Nitrate and Fuel Oil cannot be considered as a process of manufacture within the meaning of Section 2(f). In support of the above submission, he has relied upon the following decisions :- (i) In the case of Bhor Industries reported in 1989 (40) E.L.T. 280; (ii) In the case of Ambalal Sarabhai Enterprises reported in 1989 (43) E.L.T. 214; (iii) In the case of Jagatjit Cotton Textile Mills Ltd. reported in 1990 (50) E.L .....

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..... ground that it was not goods , he has also been fair enough to point out that in view of the C.B.E.C. s Circular and the various Trade Notices issued by the Department in which it was made clear that it was classifiable under Chapter 36, they had since filed the Classifi-cation List but claimed exemption and in this context, he would mainly like to emphasise the aspect of time-bar. We consider that the appellants have a strong case on time-bar inasmuch as the ld. Additional Collector himself had occasion to observe that earlier this item was not considered as dutiable and in fact, no duty was demanded from the appellants either prior to 28-2-1986 or even subsequently, and apparently, the show cause notices have been issued only in view of .....

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